Field news and more

Happy Holidays from TAG!

TAG Oil is contributing to the Red Cross in New Zealand, which is directly supporting thousands of New Zealanders still in need after the devastating earthquakes of mid-November. To learn more or to donate, please see http://bit.ly/NewZealandRedCross

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Reversing Middle East oil dependence

It’s well known that Kuwait and United Arab Emerates (UAE) are two of the most petroleum-rich countries in the world, not to mention in the Middle East. But did you know that since March 2016, the U.S. has been exporting natural gas to a few middle-eastern countries? And that they are, in fact,  growing gradually dependent on US exports? At the current rate of production, Kuwait and UAE actually hold more than 100 years of gas reserves. So why are they in need of imports from the US? The problem…

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The more the merrier when it comes to production cuts

Non-OPEC countries have announced they’re limiting their oil production, following suit with the 1.2 million barrel cuts that OPEC countries announced two weeks ago. Eleven non-OPEC countries have agreed to curb production by 558,000 barrels, and oil prices continue to rise on the good news.  Along with the non-OPEC cut, Saudi Arabia’s energy minister agreed to substantially cut more than the 486,000 Bpd previously announced. This will be the first pact in 15 years between the two groups—together they produce roughly 60 percent of the world’s crude—that have always been…

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What did past OPEC cuts accomplish?

As reported on the TAG Oil blog (and every other stock watch and natural resources outlet), OPEC  announced on November 30 that they’d agreed to cut production in hopes of reviving oil prices after a two-year slump (see our 12/1 post).  But what will the production cut accomplish?  The past is always a good indicator of what might happen in the future…and we happen to have a chart for that. The EIA chart below shows what OPEC production cuts in 2008, 2001 and 1998 did for oil prices in the…

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Next Steps and Video of TAG’s Cardiff 3 Well

As we reported in TAG Oil’s December 6 press release, the initial flow testing on Cardiff 3 well was a success!  The Cardiff field sits below TAG’s producing Cheap field, and the Cardiff 3 well test produced gas and condensate to the surface from the deeper Kapuni formation.  The Kapuni name has deep roots in New Zealand. It is named after the nearby Kapuni Field, which was not only New Zealand’s first major gas discovery, but it is also the second largest onshore gas/condensate field in New Zealand, having produced…

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What costs $292,000 per barrel?

As the price of crude climbs in the wake of the OPEC 2% production cut announcement, we’ll be curious to see just how high the price of oil will go, and how long it will be sustained.  The absolute peak of oil was in June 2008 at $139.05 bbl, which at a glance, seems like an excessive number, but in comparison to other products in the same amount, it’s actually quite reasonable.  Check out the price of a barrel of other household items—the prices may shock you!

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A deal is struck. Long live the deal.

After months of speculation, OPEC has finally reached a production reduction deal.  Members have agreed to cut 1.2 million barrels per day, OPEC’s first production cut in eight years.  The announcement has already had an effect on oil prices, with crude jumping more than 10%. The cut will be distributed between OPEC members beginning in January 2017.  Here is what the cut will look like: As previously suspected, Libya and Nigeria have been exempted from the production deal, and Iran—which is still recovering from sanctions—is allowed to raise output by…

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Gobble, Gobble, Gobble

In the spirit of Thanksgiving, celebrated by our U.S. neighbors, we want to share our thanks with TAG Oil’s supporters, followers, and as always, our hardworking staff for all they do. They’re the heart of the operation, and without them we’d be just another company. Best wishes to you all.

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Oil to remain top energy source

Don’t expect oil’s reign as the top energy source to end anytime soon. The International Energy Agency (IEA) released a report last week stating that oil and gas will be the foundation of the world’s energy supply for the next 25 years.  The forecasts for oil demand are set to reach 103 million barrels per day by 2040, and natural gas demand is growing at an even faster rate, with an anticipated growth of 50% by 2040.  At that time, oil and gas will make up over half of the…

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OPEC negotiations continue towards a cut

As the November 30 OPEC meeting approaches, news is flowing in on the possible production cut deal, the first since 2008.  Representatives from OPEC countries have been submitting their proposals to be discussed.  Algeria has recommended an output cut of 4% to 4.5% for all members excluding Libya and Nigeria, a cut that would bring down OPEC’s current production by roughly 1.2 million bpd. Meanwhile, Saudi and other Gulf countries have indicated they are willing to have output cut as much as 1 million bpd. Khalid Al-Falih, Saudi Arabia’s oil…

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